Financial Energy Review
The Nigerian National Petroleum Company Limited (NNPCL) has strongly dismissed reports suggesting that it has unilaterally terminated its Naira-for-Crude agreement with the Dangote Refinery.
In a statement issued on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the agreement, which commenced in October 2024, was structured as a six-month contract and remains in effect until the end of March 2025.
“NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery. To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025,” the statement read.
Soneye further revealed that discussions are currently ongoing to establish a new agreement, ensuring continued crude oil supply to the 650,000-barrel-per-day refinery.
“Discussions are currently ongoing towards emplacing a new contract,” he stated.
According to the statement, NNPCL has supplied a total of 84 million barrels of crude oil to the Dangote Refinery since it commenced operations in 2023. Under the current contract, which began in October 2024, the refinery has received 48 million barrels for refining petroleum products.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” Soneye assured.
The Naira-for-Crude agreement was introduced as part of efforts to enhance local refining capacity and reduce Nigeria’s reliance on imported petroleum products. The ongoing negotiations signal the commitment of both parties to sustaining domestic refining operations.
